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 Posted: Mon Mar 03, 2008 12:40 pm
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We need to know exactly how to interpret Texas law, please! I know there are "experts" on here as to reading the state laws and figuring how much the actual payback amount is. I'm trying to help a member and, for the life of us, can not figure out exactly what the payback amount would be for a Texas pdl. A licensed pdl - not an illegal one. Please read the following Texas state pdl law and post what exactly it means! Call me stupid!  But say, for example, what would the payback be for a $300.00 loan??? Thank you sooooo much for any help on this!
Last edited by cannr on Mon Mar 03, 2008 12:42 pm |
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cannr
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Posted: Mon Mar 03, 2008 12:40 pm
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| Quote: | Texas State Information
Legal Status: Legal
Citation:
7 Tex. Admin. Code § 1.605; Tex. Fin. Code Ann. §§ 342.251 et seq. and 342.601 et seq.
Loan Terms:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
APR for 14-day $100 loan: 309%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610 |
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cannr
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Posted: Mon Mar 03, 2008 12:46 pm
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Does anyone also understand the rollover rule here as well...
thanks community....much appreciated.
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purplegirl69
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Posted: Mon Mar 03, 2008 12:58 pm
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Here's what purple is talking about:
| Quote: | | Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note) |
It's saying no rollovers, but what does all that stuff after it mean???
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cannr
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Posted: Mon Mar 03, 2008 1:50 pm
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Is the company you are trying to calculate a licensed pdl? Or a registered CSO? Most places in Texas are CSO's . . . .
To calculate per the pdl laws above you would use the following formula:
Amount x Interest x time
330 x (.48/365) = .433973
.433973 x time period in days
.433973 x 14 days = 6.0756
Total cost = $336.08
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goudah2424
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Posted: Mon Mar 03, 2008 1:55 pm
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I am trying to figure out how much I should actually owe back to the 2 legal pdl companies. Both internet..Just want to make sure I am calculating correctly before sending them a letter/email that I have closed my account and want to set up arrangements.
thanks goudah...
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purplegirl69
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Posted: Mon Mar 03, 2008 1:57 pm
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A lender and a borrower may renew a loan, but the loan must be converted from a single payment balloon loan to a declining balance installment note.
Alternatively, the payday loan or deferred presentment transaction may be renewed without limitation to the number of renewals where the effect of the total amount of charge would not exceed the total amount authorized by §342.252 having due regard for the amount of the cash advance and the time the cash advance is outstanding.
What that means is that if the finance fee is so small that renewing the loan would not take it over the max fee allowed, the loan can be rolled over. Example - You borrow $100. The fee is only $2.50. You could roll over the loan 4 times because the total paid in fees is still less then the max amount. Make sense?
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goudah2424
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Posted: Mon Mar 03, 2008 1:58 pm
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What are the company names? If they are CSO's these laws wouldn't even apply.
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goudah2424
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Posted: Mon Mar 03, 2008 2:03 pm
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Cash Net USA is a CSO in Texas.
Think Cash is an installment loan backed by a bank.
If those are the 2 companies you are thinking about, the laws posted above would not apply.
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goudah2424
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Posted: Mon Mar 03, 2008 2:05 pm
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Cashnet USA and Think Cash are the ones I was talking about...
So what should be paid back to these companies as pertaining to the laws of Texas?
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purplegirl69
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Posted: Mon Mar 03, 2008 2:07 pm
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To date I have borrowed $4350 and paid back $4037. but with the new loan i just received have paid back 1 renewal fee.
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purplegirl69
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Posted: Mon Mar 03, 2008 2:08 pm
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Thank you, goudah! One of the pdls was stating some ungodly amount of over $500 for a $300 loan based on the Texas pdl law. However, I do believe CashNetUSA might be one that purplegirl is working on. I could be wrong. But, purple, if one is CashNetUSA, then they won't go by these laws. Goudah, what law would they go by? Their "own" since they are a CSO???
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cannr
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Posted: Mon Mar 03, 2008 2:08 pm
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purple, we were typing at the same time! 
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cannr
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Posted: Mon Mar 03, 2008 2:14 pm
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Thing is, Federal law superseeds state law, and federal law says that fees charged by a CSO cannot be considered interest. So technically, Cash Net USA is charging you the low interest rate of only 10% per year. But they also charge a $25 per $100 fee (which is exempt from interest calculations). It is totally 100% legal.
What that means is that they are charging you correctly. Since they aren't a pdl, rollovers are allowed. CSO's are a virtually unregulated industry.
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goudah2424
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Posted: Mon Mar 03, 2008 2:17 pm
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Since Think Cash is an installment loan, and backed by an FDIC Insured bank, the laws of Texas would not apply at all. It would be the laws of DE, where the bank is located, and DE has no interest rate cap.
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goudah2424
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